A failure to report suspicions, or gross negligence in implementing processes and procedures in relation to suspicions of money laundering, can result in a fine of:
A.
no less than AED 50,000 and no more than AED 1,000,000
B.
no less than AED 100,000 and no more than AED 1,000,000
C.
no less than AED 100,000 and no more than AED 5,000,000
D.
no less than AED 1,000,000 and no more than AED 10,000,000
Under Federal Law No. 20 of 2018 and the CISI UAE Financial Rules and Regulations, entities failing to report suspicions of money laundering or exhibiting gross negligence in their anti-money laundering (AML) processes are subject to severe financial penalties. The fine ranges from no less than AED 100,000 and no more than AED 5,000,000. These substantial fines are intended to enforce strict compliance with AML obligations and deter negligence or complicity in money laundering activities. This penalty framework ensures organizations maintain robust internal controls, timely reporting, and staff training to identify and report suspicious activities effectively, thereby protecting the UAE’s financial system.
[Reference: CISI UAE Financial Rules and Regulations — AML Enforcement and Penalties, Section 8.5.2 (2023)., ]
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